Carbon Emissions, Ecological Efficiency, and the Economic Development Stage: Evidence from the Yellow River Basin

Abstract

This paper has explored the relationship between CO2 emissions, eco-efficiency, and economic growth, which has important theoretical and practical significance for realizing high-quality development of the Yellow River Basin (YRB). Based on the data of 99 prefecture-level cities in the YRB from 2003 to 2017, this paper analyses the temporal and spatial variation and agglomeration characteristics of CO2 emissions and eco-efficiency in the YRB. The spatial Durbin model (SDM) with fixed effects is used to test the relationship between CO2 emissions, eco-efficiency, and economic growth in the YRB by using new structural economics theory and the EKC hypothesis. The results show that (1) the YRB is in a stage of extensive economic development with the coexistence of high CO2 emissions and low eco-efficiency and shows a trend of transformation and upgrading to a stage of high-quality economic development; (2) CO2 emissions and eco-efficiency are spatially heterogeneous; CO2 emissions and eco-efficiency in the upper reaches are low, and the middle maintains relatively high eco-efficiency and high CO2 emissions while the lower reaches have both high CO2 emissions and low eco-efficiency; (3) the relationship between CO2 emissions and economic growth is N-shaped, and there is an inflection point of accelerated increase (per capita GDP is 45,558 yuan). The YRB has crossed this inflection point, and CO2 emissions are accelerating with economic development at this stage. The relationship between eco-efficiency and economic growth is U-shaped, with the inflection point of per capita GDP at 46,483 yuan. The YRB has just crossed the point, and eco-efficiency will subsequently steadily rise with economic development.